Renters insurance: Why it’s important?

1. Moveable Possessions  ̶  These can include clothing, electronics, furniture, appliances, bed linens and kitchen utensils, for example. Renters insurance provides coverage for these items if damaged by a covered loss, which means less money out of your pocket to replace your stuff. It provides coverage from damages caused by: 

• Fire 

• Lightning 

• Smoke 

• Theft 

• Vandalism 

• Explosion 

• Windstorm 

• As well as other perils that are mentioned in the policy  

2. Liability  ̶  We mentioned above how you might be held liable for damage or injury, to property others even though you are only a renter. Renters insurance can protect you from property damage and bodily injury you cause. Guests injured in your rented apartment or home will have an amount of no-fault medical coverage. 

3. Additional Expenses  ̶  Let us suppose the damage incurred by a covered peril rendered your rental unit uninhabitable. You will have coverage for the additional living expenses incurred by you so that your household can maintain its normal standard of living. Other expenses covered can include meals, hotel bills and costs above and beyond your everyday expenses. 

4. Actual Cash Value (ACV) and Replacement Cost Coverage (RC)  ̶  Unfortunately, damage happens, and you file a claim with your insurance company. ACV or RC determines the recoverable reimbursement amount for the item damaged by a covered claim. 

ACV will reimburse the cost of damage once the age of each possession mentioned in the claim is determined and depreciation based on wear and tear or depreciation resulting from years gone by has been taken into consideration.  

How much coverage do I need? 

This question can be more challenging than you think, especially when it comes to covering all your possessions. There is a certain amount of give and take when it comes to insurance. For example, ACV may provide a smaller reimbursement, but also less expensive premium. RC costs more because the insurance company will give a greater reimbursement if an accident occurs. 

A policy’s premium is determined by the amount of coverage it provides. You should consider coverage to replace what you might lose in a fire, a theft, or another loss. It can be challenging to determine how much each bit of our personal property is worth. Many renters decide on a ballpark figure rather than exact amounts. 

An exception can be valuables such as jewelry. Your grandmother’s engagement ring might have more than sentimental value; it could be worth more at today’s values. People will ordinarily schedule such specific personal property in the policy as endorsements. These will get more protection with extra coverage for those special scheduled items. 

Want to find out how much renters insurance you need to cover your belongings? Try our renters insurance calculator to determine the amount.  

How to make sense of those insurance terms 

You want additional coverage for that special engagement ring, so you add an endorsement to cover the ring, as part of the scheduled personal property. Instead of the usual policy limits on a policy, a higher figure is afforded for the engagement ring when a covered loss occurs (theft is the most common hazard for jewelry).  

Instead of only a maximum coverage limit of $1,500 for that stolen ring, the maximum limit will be the amount the item is scheduled for. It cannot compensate you for the memories, but the endorsement means the item could be expected to be replaced with one comparable to the jewelry lost or damaged. This will make it less likely that you will have to dip into your cash reserves to replace that jewelry. 

Let us say your side hustle has turned into a new career path. you can also secure a home business endorsement (your standard policy does not cover a home business). 

Looking at the cost 

Renters insurance does not cost a lot. At our company, renters insurance costs an average of $8.70-$16.30/month* for basic protection! The premiums also can be higher depending on the amount of deductible, coverage limits and endorsements that could be part of the policy.  

Renters insurance is prudent, but what coverage do you need? Will the basic policy do the job, or are there valuables that require added protection? There is always a worry of having too much (expensive) or too little (insufficient) insurance. All these decisions might make a renter give up before starting to look for an insurance policy. 

East Street Insurance has helped consumers choose the right coverage, at affordable prices. Buyer satisfaction is more important than premium volume to us. 

Buying renters insurance can be easy, we will show you how 

East Street Insurance has helped consumers buy the right coverage at affordable prices.  

You can expect our insurance agents to answer your questions and patiently explain coverages.  Your East Street agent will gladly give you guidance on how to best cover your valuables so that the policy you purchase will effectively cover your specific needs. The agent will also point out the most cost-effective way for you to pay your premium.  

A common question is whether the policy should cover a roommate. Your East Street agent can share information about how to deal with that situation and other less than ordinary predicaments.  

We want to help you with your insurance needs. We offer other products besides renters insurance that you might be interested in, and we can discuss those with you as well. Please feel free to contact us at your convenience. We welcome the chance to help you find the coverages that fit your needs!  

*Contact East Street Insurance for details. Rates are estimated, subject to change and based on insurance scoring.